The pound declined against the other major currencies in early European deals on Friday, as UK manufacturing growth remained subdued in March and as caution prevailed ahead of U.S. jobs data for March, due later in the day.
Survey figures from Markit Economic showed that British manufacturing growth improved less-than-expected in March, though slightly.
The Markit/Chartered Institute of Procurement & Supply Purchasing Managers’ Index for manufacturing rose to 51.0 in March from February’s 34-month low of 50.8. Economists had expected the index to climb to 51.2.
The closely-watched U.S. jobs report is expected to show an increase of about 210,000 jobs in March after employment jumped by 242,000 jobs in February. The unemployment rate is expected to hold at 4.9 percent.
The data, which is a key gauge to assess the strength of the economy, may provide clues to the Federal Reserve’s interest-rate path.
In other economic news, data from the Nationwide Building Society showed that U.K. house price growth accelerated more than expected in March.
House prices climbed 5.7 percent year-on-year in March, faster than February’s 4.8 percent growth and the expected rise of 5.1 percent. This was the fastest growth since January 2015, when prices climbed 6.8 percent.
The pound showed mixed trading against its major rivals in Asian deals. While the pound held steady against the greenback and the euro, it slipped against the yen and the franc.
The pound slipped to 0.7965 against the euro, a level unseen since December 2014. On the downside, 0.81 is likely seen as the next support level for the pound.
Final data from Markit showed that Eurozone manufacturing growth improved more than initially estimated in March.
The factory Purchasing Managers’ Index rose to 51.6 in March from 51.2 in February and above the flash score of 51.4.
The pound hit an 8-day low of 1.3743 against the Swiss franc, compared to 1.3805 hit late New York Thursday. The pound may find support around the 1.35 region.
Retreating from an early high of 1.4371 against the dollar, the pound fell to a 3-day low of 1.4311. The next possible support for the pound-dollar pair is seen around the 1.42 area.
The pound held steady against the Japanese yen with the pair trading at 160.87, following a 4-day decline to 160.64 at 10:00 pm ET. The pair finished yesterday’s trading at 161.60.
Survey data from Markit Economics showed that Japan’s manufacturing activity deteriorated for the first time in eleven months in March, as output and new orders fell at sharper rates.
The Markit/ Nikkei Manufacturing Purchasing Managers’ Index, or PMI, fell to 49.1 in March, in line with the preliminary data, from 50.1 in February.
Looking ahead, U.S. jobs data, U.S. ISM manufacturing PMI for March, construction spending for February, University of Michigan’s final consumer sentiment index for March and Baker Hughes rig count data are slated for release in the New York session.
At 12:00 pm ET, Federal Reserve Bank of Cleveland President Loretta Mester is expected to speak about the economic outlook and monetary policy at the New York Association for Business Economics, in New York.
The material has been provided by InstaForex Company – www.instaforex.com